Texas Sues GM Over Data Sales

Texas Attorney General Ken Paxton has filed a lawsuit against General Motors (GM), accusing the automaker of illegally collecting and selling driver data from over 14 million vehicles without consumer consent. The lawsuit, announced this week, follows an investigation initiated in June that revealed GM's use of technology to gather detailed driving information, including speed, braking habits, and seatbelt usage, to create "Driving Scores" for more than 1.8 million Texas drivers. The complaint alleges that GM misled consumers into believing that enrolling in OnStar diagnostic products was mandatory during the vehicle purchase process. Paxton criticized GM's practices as deceptive, stating that consumers were subjected to confusing disclosures that obscured the reality of data collection. He emphasized that many drivers expected to buy a vehicle, not a surveillance system that records their driving habits for sale to third parties, including insurance companies. In response to the lawsuit, GM acknowledged ongoing discussions with the Attorney General's office and expressed a commitment to consumer privacy. However, the lawsuit seeks damages, a court order to cease current data practices, and the deletion of unlawfully obtained data. This case is part of a broader scrutiny of the automotive industry, as other manufacturers, including Honda and Hyundai, have also faced allegations of similar data collection practices. As the lawsuit unfolds, it highlights growing concerns over consumer privacy in the automotive sector, particularly as insurance rates rise and data collection becomes increasingly pervasive.